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2011 (12) TMI 188 - AT - Income TaxRenovation expenses – lease building – capital expenditure vs revenue expenditure – Held that:- Assessee has not made any construction of structure or carried out any work in the form of renovation or extension, improvement of the building. The building that was taken on lease remained intact. What has been done was only to create a better working environment. Further, agreement between the assessee and the lessor in Clause7 (e) specifically provides that the repairs shall be carried out only by the lessee subject to permission of lessor. Therefore, the expenses are allowable u/s.30(a)(i) of the Act. We are also of the view that the expenses in question are allowable u/s.37(1) of the Act – Decided against the Revenue.
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